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GBP/USD on the edge of falling to a fresh six-year low

© Dukascopy Bank SA
"Fundamentally, two big issues are weighing on sterling. One is Brexit and the other is that growth numbers have been on the weaker side and that's pushed back BOE hike expectations."
- Societe Generale (based on Business Recorder)

Pair's Outlook
The British currency retreated from intraday gains on Monday, ending the day with a 20-pip loss against the US Dollar. The GBP/USD pair now faces the 2010 low at 1.4230, as it has been trading in a strong bearish trend for the last five weeks. A sharp decline on Friday opened the door for a corrective rally up to 1.4440, where the down-trend lies; however, the weekly PP and monthly S2 form a rather strong supply around the 1.4380 area. Meanwhile, the Bollinger band and the weekly S1 should limit the dips in case UK fundamentals disappoint and push the Pound lower.

Traders' Sentiment
For the fourth weekday in a row bullish market sentiment remains unchanged at 63%. The share of sell orders slid from 65 and 63%.

© Dukascopy Bank SA


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